Buying A Home In A Sellers Market
Jan 14, 2021
Tips For Buying A Home In A Seller's Market
Buying a home is a huge achievement. But if you're buying a home in a seller's market, you may find that it's become a daunting task to make your purchase.
Real estate goes through seasons, and the market can change quickly from a buyer's market to a seller's market. Your real estate agent will be your best bet to navigate the seasonality of the market, but we've got some tips for you on how to adjust your strategy for the market.
GET AN AGENT
If you're serious about buying a home during a seller's market, you're going to need the help of a professional. Your real estate agent will have the practical knowledge, skills, and experience to help you make the best offer on a home and will know how to help your offer stand out amongst the crowd.
THE NEED FOR SPEED
In a seller's market, you must assume that there will be some stiff competition for the home you're looking at, and that the seller will be receiving multiple offers on the home. Don't wait several days to view a home, it could be sold before you even have the opportunity to take a look. Do your best to be the first person to view the home; chances are high that if you make a compelling offer quickly, it will be accepted by the seller.
INVOLVE YOUR AGENT
When the market is favoring the seller, you need to be making the cleanest offer that you can; there likely won't be a lot of back-and-forth negotiation happening in a seller's market. Get your real estate agent involved so they can help you write a compelling offer to send to the listing agent. With multiple offers coming in, a seller is going to be likely to go with the offer closest to their price point with the least amount of effort required on their part. Be that person that's simple, easy, and fast.
KNOW YOUR DEALBREAKERS
Before you go looking to buy a home in a seller's market, you'll want to decide ahead of time what you can live with in a home and what you can't. Location is everything, so decide ahead of time what lot size is okay with you, and if you're okay living near a commercial district. You don't want to waste your time making an offer on a home that you don't love just to buy a home, so know your dealbreakers and move to the next seller if you must.
The quicker you can make an offer and get through the buying and selling process, the more attractive you will look to the seller. Talk with lenders and mortgage brokers ahead of time and get preapproved to save time when you make your offer.
MAKE A COMPELLING OFFER
The best offer isn't necessarily the highest one. You don't want to offer less than the asking price during a seller's market, but the asking price may be as high as you need to go. Speak with your real estate agent about how much a good earnest money deposit would be for the home and then consider doubling or tripling the amount. It'll help cover costs during closing regardless, and it shows the seller you're serious. Consider also offering to give the seller extra time to move their possessions out of the home, too. It's a simple yet often-not-used tactic by buyers which gives the seller a more favorable impression of you.
KNOW YOUR LIMIT
It may be tempting to get involved in competitive bidding on a house you love. But you need to know your spending limit ahead of time and not get caught up in the moment. Set a budget for yourself so you don't strain your accounts and put undue stress on yourself in the future. There are a lot of homes out there, so don't get too attached too quickly.
PATIENCE IS KEY
While the advice to buying a home during a seller's market is to be prepared and to move quickly on a purchase, it doesn't mean that you're going to be buying a home instantly. You need to be prepared to wait several months and miss out on several dream homes before you finally have an offer accepted. You're up against a lot of other buyers so be prepared to play the waiting game and arm yourself with the tools above.
Are you ready to buy a home? No matter the market, our real estate agents are ready to help you! Call 260-248-8961 to connect with an Orizon Real Estate agent today!